Tata Sons Picks Up R R Donnelley Pie At Rs 280/Share

The Tatas have acquired the 25.37 per cent stake held by the US-based R R Donnelley & Sons in Tata Donnelley for a consideration of around Rs 55 crore at Rs 280 per share.

The Tatas have acquired its joint venture partner's stake through the group holding company Tata Sons. When contacted a senior Tata group official did not wish to comment on the issue.

With the acquisition, Tatas stake in the joint venture has gone up to 52 per cent from the present 25.37 per cent.

The decision was made in the view of Tata Donnelley's strategy to expand its branded publishing activities and RR Donnelley's intent to concentrate in the US and on strategies that focus on their customers' communication needs.

 

Tata Donnelley managing director Hoshang Billimoria had said the acquisition is expected to help achieve its growth objectives by expanding into newer areas of publishing. This is a natural progression of the success that has followed the successful launch of the company's publications.

The flagship brand of the company, Tata Press Yellow Pages provides classified information for 10 major cities and is a leader in circulation and market share. The yellow pages provides classified information about 10 major cities and has a good leadership circulation and market share.

The Tata press exporters pages, another publication, is also a major trade directory of exporters in India. Both these publication together make Tata Donnelley, the largest publisher and printer of business directories in India.

The direct marketing division of the company, Direct Edge, provides a comprehensive end-to-end marketing solutions for corporates and is one of the largest direct marketing outfits in India.